Question

Sun India Ltd. invited applications for issuing equity shares of ₹ 10 each at a premium of 10%. The premium was payable on allotment. Because of over-subscription, all the applicants were divided into three categories for the purpose of allotment: Category I - Applications for 1,00,000 shares were allotted shares in full. Category II - 3,00,000 shares were allotted to the applicants of this category. For every 5 shares applied, 3 shares were allotted. Category III - 8,00,000 shares were allotted to the applicants of 12,00,000 shares. Amount payable per share was as follows: On Application - ₹ 2 per share On Allotment - ₹ 5 per share (including premium) On First and Final call - Balance Excess money received with applications was adjusted towards sums due on allotment.

What was the amount of money received on allotment?

Options

• ₹ 60,00,000

• ₹ 12,00,000

• ₹ 6,00,00,000

• ₹ 48,00,000

Answer 1

₹ 48,00,000

Explanation:

Amount received on Application in I = 1,00,000 × 2 = 2,00,000 

Amount received on Application in II = `3,00,000xx5/3xx2` = 10,00,000

Amount received on Application in III = 12,00,000 × 2 = 24,00,000

Amount received = 36,00,000

Less: Amount that was needed to be received = 24,00,000

Balance Amount = 12,00,000

Amount to be received on Allotment = 60,00,000

Amount received on Allotment = 60,00,000 - 12,00,000 = 48,00,000